The Fiduciary Parent – The Ultimate Plan Sponsor Shouldn’t Overlook this Familiar Tool
BlueSky Wealth Advisors Founder and CEO David L. Blain, CFA is featured in the following Fiduciary News article.
Plan sponsors act as the parental overseer for corporate retirement plans. They set up the plan. Then determine the grid of investment options. They help the employees direct their earnings into the plan. The employees may have a say in what investments they choose, but only within the confines of the menu already approved by the plan sponsor. In this way, plan sponsors are like parents watching over their employees’ retirement savings.
What if we shifted this simile to a metaphor? And if we’re going to use it as a metaphor, why not treat it as an actual thing?
Parents are in a real position to become “plan sponsors” for their children’s retirement plans. When you think about it, in acting as a fiduciary in this way for their children, they become the ultimate plan sponsor. There’s a tool right at their fingertips they might be overlooking. “When you think of IRAs, you likely picture working adults with retirement on the mind,” says Madison Parker of Parker Financial Group in Overland Park, Kansas. “However, there is no minimum age requirement to open and fund an IRA.”